Key Takeaways
- • 75% of family offices globally expect increased investment risk appetite over the next 12 months, with 13% anticipating dramatic increases, according to an Ocorian survey of executives representing USD119.37 billion in combined family wealth across 16 countries.
- • Universal commitment to private equity expansion: 100% of surveyed family offices plan to raise private equity allocations within two years, with two-thirds targeting increases between 25% and 50%.
- • Broad alternative asset reallocation underway: 96% plan to increase private capital allocations, 93% intend to boost private debt exposure, 88% target infrastructure increases, and 86% plan greater real estate investment.
- • Greater transparency in alternative assets cited as primary driver: 61% of respondents identified improved visibility into higher-risk asset classes as the top reason for increasing risk appetite, while 48% cited falling interest rates and AI/technology stock outperformance as secondary factors.
- • Geopolitical uncertainty and ESG priorities persist: 46% of family offices attributed risk appetite changes to geopolitical instability, while environmental, social, and governance considerations remained integral to investment decision-making.
Summary
Family offices are executing a significant portfolio rotation toward alternative assets and elevated risk positioning, driven primarily by improved transparency in complex investment vehicles and favorable macro conditions. The Ocorian survey encompasses 16 jurisdictions—including Hong Kong, Singapore, the UK, the US, Switzerland, the UAE, Saudi Arabia, South Africa, Mauritius, and Bahrain—and represents respondents managing USD119.37 billion in combined family wealth. The breadth of geographic representation and asset base underscores the global nature of this strategic shift within the family office sector.
The survey reveals near-universal appetite for private equity exposure, with all respondents committing to increased PE allocations over the two-year planning horizon. Notably, two-thirds of family offices intend to increase private equity holdings by 25% to 50%, representing substantial capital redeployment. This aggressive repositioning extends across the alternative asset spectrum: 96% of respondents plan higher private capital allocations, 93% intend to expand private debt exposure, 88% target infrastructure investment increases, and 86% plan to boost real estate allocations. The consistency of these commitments suggests a coordinated structural shift in how family offices are managing multigenerational wealth.
The primary catalyst for increased risk appetite centers on enhanced transparency and data accessibility around alternative asset classes, with 61% of respondents citing this factor. Secondary drivers include the confluence of falling interest rates and strong technology sector performance—cited by 48%—which has made equity-like risk exposure more attractive relative to fixed income alternatives. Geopolitical volatility, mentioned by 46% of respondents, appears to be prompting portfolio diversification rather than risk reduction, suggesting family offices view alternatives as a hedge against traditional equity and macro uncertainty.
Environmental, social, and governance (ESG) considerations retain importance within the family office investment thesis, remaining embedded in allocation decisions despite the broader pivot toward higher-risk and alternative exposures. This integration of ESG criteria alongside alternative asset expansion indicates that family offices are pursuing growth while maintaining alignment with long-term values-based investment objectives.
The survey reveals near-universal appetite for private equity exposure, with all respondents committing to increased PE allocations over the two-year planning horizon. Notably, two-thirds of family offices intend to increase private equity holdings by 25% to 50%, representing substantial capital redeployment. This aggressive repositioning extends across the alternative asset spectrum: 96% of respondents plan higher private capital allocations, 93% intend to expand private debt exposure, 88% target infrastructure investment increases, and 86% plan to boost real estate allocations. The consistency of these commitments suggests a coordinated structural shift in how family offices are managing multigenerational wealth.
The primary catalyst for increased risk appetite centers on enhanced transparency and data accessibility around alternative asset classes, with 61% of respondents citing this factor. Secondary drivers include the confluence of falling interest rates and strong technology sector performance—cited by 48%—which has made equity-like risk exposure more attractive relative to fixed income alternatives. Geopolitical volatility, mentioned by 46% of respondents, appears to be prompting portfolio diversification rather than risk reduction, suggesting family offices view alternatives as a hedge against traditional equity and macro uncertainty.
Environmental, social, and governance (ESG) considerations retain importance within the family office investment thesis, remaining embedded in allocation decisions despite the broader pivot toward higher-risk and alternative exposures. This integration of ESG criteria alongside alternative asset expansion indicates that family offices are pursuing growth while maintaining alignment with long-term values-based investment objectives.
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